Inflation and Weddings

Published by Martin Gover in Wedding Tariffs · Thursday 23 May 2024
Tags: Wedding, Tariffs, Hospitality, Costs, Inflation

"Despite inflation at 10% in 2022, our rates went unchanged up to end 2023. It was supposed to be 'transitory' inflation!

We did not want to raise prices. Couples like how reasonable our rates are. We'd not increased wedding meals and drinks package pricing since 2018! Yet our running costs went up by circa 40%.

Sadly inflation 'bedding in' at circa 10% for 2 yrs, even as wedding couples' available funds drop.

The Ukraine war continues, supply chain weaknesses due to Middle East instability, and economic policy failures, all combine to threaten yet more inflation. Customer concerns about 'cost of living' clash with businesses needing to repay COVID loans and survive an increase in costs.

Wages are spiralling for Hospitality. Our food and fuel/ heating and 'hospitality' running costs and castle maintenance have shot up much higher than the 10% national inflation rate. Rates for 2024-2026 allow for continued 10% inflation in costs of the wedding breakfast, drinks, venue hire and all sundries. This may not be sufficient.

If we stick to 10% incremental increases, our rates will remain largely unchanged in real terms; it's the value of money that's dropping.

Inflation reduces what your money will buy. Venues have to forecast the 'value of money' in 2 - 4 years time. Our prices were slipping lower compared to most wedding venues. With weddings sold so far in advance, all venues must estimate for inflation - not the supposed 'national rate', but the actual rate in 'Hospitality'.

More bookings allowed lower pricing per event.

We offered lower rates because we hosted more weddings (145 in 2022). Yet with food up, electricity (up triple in one year!) and heating bills all increasing hugely in last 12 months, our prices fell below our costs. For 2024 we saw 'weddings booked' drop to just 61 (as of June 2023). It has since picked up a bit due to Last Minute deals. Under-pricing with Last Minute deals is not sustainable if we do not sell at volume. Arguably, Last Minute deals are not even sustainable at volume.

So not only must wedding tariffs move in line with inflation, we must also now price for holding fewer weddings.

We may also consider closing completely in winter months rather than remain open for weddings all year.

As this pattern is mirrored across all other venues, venues that wish to remain commercially viable will increase tariffs in 2025/6. And close in the winter months. This means winter deals will drop off as it can be cheaper to close in winter. You may find some good summer deals though.

Book a date ASAP to 'lock in' our current tariffs for weddings in 2025-2026. Book your date early to secure current rates - start a monthly instalment plan a year or more in advance of your wedding date."

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